NCR to Buy Digital Insight for $1.65 Billion for Web Banking

NCR Corp. (NCR), the 129-year-old maker of
cash registers and other payment-processing systems, agreed to
acquire Digital Insight Corp. for $1.65 billion to gain software
for online and mobile banking.

The purchase of Digital Insight, controlled by private-equity firm Thoma Bravo LLC, is expected to be completed in the
first quarter of next year, NCR said today in a statement. The
transaction will boost adjusted 2014 profit, the company said.

NCR is broadening its technology as customers seek new
options for commerce via mobile phones and other devices. Along
with the $84 million purchase of Alaric Systems Ltd., a deal
that closed today, the Digital Insight acquisition will expand
the software NCR offers banks, providing tools that span the
Web, mobile devices, ATMs and local branches, the company said.

The shares of Duluth, Georgia-based NCR dropped 2.2 percent
to $34.19 at the close in New York, before the transaction was
disclosed. They have climbed 34 percent this year.

Moody’s Investors Service placed NCR’s ratings on review
for a possible downgrade following the announcement of the
acquisition, citing a strain on the company’s credit profile.
Moody’s said in a statement that it currently has a long-term
rating of Ba2, two levels below investment grade, on NCR.